Profitability Analysis of a Beef Production on WW-B. Dahl (Bothriochloa bladhii) Pasture under Different Combination of Irrigation and Supplement Feeding

Abstract

A benefit-cost analysis was performed on a stocker cattle operation on WW-B. Dahl [Bothriochloa bladhii (Retz) S.T. Blake] pastures under six combinations of irrigation and supplement.  Beef production cost and net revenue in LI-S (low irrigation-supplement feeding), LI-NS (low irrigation-no supplement), HI-S (high irrigation-supplement feeding), HI-NS (high irrigation-no supplement), NI-S (no irrigation-supplement feeding), and NI-NS (no irrigation-no supplement) production scenarios were estimated.  In the summers of 2003 and 2004 the cost of production considered in this research included expenditures on electricity, fertilizer, irrigation equipment maintenance, labor, feed, interest on steer investment, veterinary supplies, and minerals.  Steer buying and selling prices used to estimate revenues were the average U.S. weekly steer prices reported for the Texas Panhandle region.  Beef production cost was lower in the NI-NS scenario in both years and net revenue over operating cost was higher in the NI-NS scenario in 2003 ($124/acre) and the NI-S scenario in 2004 ($90/acre).  These data suggest that incorporation of WW-B. Dahl into the forage/beef production systems of the Texas High Plains may provide a feasible economic option under non-irrigated conditions.